Managing Accounting With Several Properties in Single LLC

[Fred Tracy]

Hello all,

I searched quite a bit and couldn't find this topic covered. I've got a series LLC with a single checking account and have three properties in it. My question is about how to efficiently manage withdrawing and "rebalancing" money within the account.

For example, let's say I've got $12500 in the checking account. Here's a sample breakdown of what money belongs to each property:

Property A: $2500, Property B: $5000, Property C: $5000 for a total of $12500.

Easy enough. Suppose Property A has to be re-roofed for $5000. Now I've got:

Property A: -$2500, Property B: $5000, Property C: $5000 for a total of $7500.

Now that Property A is negative in my books I'd like to add $5000 back to it. Suppose that I want to take $2500 from Property B and Property C and add that to property A so that each house has $2500.

The only way I know of doing that currently is to write myself a check from the business for $2500 from Property B and another check for $2500 from Property C, each of which is an "owner's draw". I could then do a "capital contribution" in a form of a check from me to the business for $5000 for Property A.

That seems like a lot of work, and largely pointless since the same net money will be in the business checking account. Couldn't I just make an entry or two in my books saying that I'm transferring money from one property to another and not mess with moving money out of the business? If so, is there a preferred way of doing this?

Basically, I want the most efficient way of dealing with moving money around within the LLC without doing something stupid to shatter my liability protection or mess up my books.

Thanks for any advice!